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Gravois, Inc., incurred the following costs during June: Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $158,375 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283,140 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,065 Manufacturing overhead, actual . . . . . . . . . . . . . . . . . . . . . . . . 204,750 Raw materials used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460,980 Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,000 During the month, 19,500 units of product were manufactured and 11,000 units of product were sold. On June 1, Gravois, Inc., carried no inventories. On June 30, there were no inventories for raw materials or work in process. a. Calculate the cost of goods manufactured during June and the average cost per unit of product manufactured. b. Calculate the cost of goods sold during June. c. Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the ?nancial statements?
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